Culver, a coffee$-$mug producer, generally conducts over half of its business in the last month of the calendar year due to holiday sales. By the end of December, its fiscal year$-$end, Culver had accumulated Cost of Goods Sold in the amount of $$250,000.$ Culver's business model is to maintain minimal WIP Inventory and FG Inventory, so these two accounts had balances of just $$15,000$ and $$20,000,$ respectively, on December $31.$ Culver does hold a fair amount of RM Inventory, however, so it will be able to quickly fulfill its orders. As a result, its December $31$ RM Inventory $($all direct materials$)$ is $$85,000.$

Culver utilizes a normal costing system, in its effort to have timely applied MOH information for each custom job, and its budgeted MOH rate is $$2\mathrm{.}25/$direct labor hour. Budgeted MOH at the beginning of the year was $$155,000$; actual MOH costs incurred by the end of the year were $$155,000.$ Actual direct labor hours used were $66,000.$

$($a$)$

Your answer is correct.

Was Culver's MOH cost for the year under$-$ or overapplied? By how much?

MOH cost was by $

Record the journal entry to close out that MOH difference by using the direct write$-$off method. $($Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.$)$

Account Titles and Explanation

Debit

Credit

Cost of Goods Sold

MOH Control

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Attempts: $1$ of $3$ used

$($c$)$

Record the journal entry to close out the MOH difference by prorating it to the appropriate inventory$/$cost accounts based on their ending balances. $($Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries. Round proportions to four decimal places, e$.$g$.0\mathrm{.}5250$ and final answers to $2$ decimal places, e$.$g$.5,275\mathrm{.}25.)$

Account Titles and Explanation

Debit

Credit

:$\text{'}$

WIP Inventory

EG$.$lnventory

Record the journal entry to close out the MOH difference by prorating it to the appropriate inventory$/$cost accounts based on their ending balances. $($Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries. Round proportions to four decimal places, e$.$g$.0\mathrm{.}5250$ and final answers to $2$ decimal places, e$.$g$.5,275\mathrm{.}25.)$

Account Titles and Explanation

Debit

Credit

WIP Inventory

FG Inventory

Cost of Goods Sold

MOH Control

$6500\mathrm{.}00$

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